Smart Use of Funds Will Yield Long-term Benefits

BY ROBERT W. PERKINS

AS THE STATE CONTINUES to cope with the economic fallout of the COVID-19 pandemic, it is imperative now more than ever for state leaders to enact economic policies that will make Delaware more attractive to existing and potential new employers. And importantly, with billions of federal funds coming to Delaware through the American Rescue Plan Act and the infrastructure bill, the state must intensify its efforts to become more efficient in permitting processes to attract and retain businesses. Without such an effort, we risk sending some of those federal funds back to Washington, since they come with strict timelines for allocation and expenditure.

Delaware already has taken important steps in response to the economic fallout from the pandemic. Last year with Governor Carney’s leadership, the General Assembly approved a Site Readiness Fund to help create approved sites for businesses to build needed facilities and create jobs. This fund will enable the Delaware Prosperity Partnership to market strategic locations to businesses interested in bringing jobs to Delaware. With the support of the Workforce Development Board and other partners, the State established Forward Delaware, a program designed to help jobseekers find skills training and employers connect with a qualified workforce. Governor Carney also has begun to identify important areas where federal funds can be put to wise use, such as investing in broadband capabilities, housing initiatives, early childhood education and child care providers, creating the Community Investment Recovery fund, and other projects.

But this is just the beginning of a huge influx of federal funds coming to Delaware, and there is much more to be done.

We must start with a top priority in our state’s fight to retain and attract jobs to Delaware—the proposed Ready in 6 initiative, which is designed to make Delaware more economically competitive with other states by cutting the permitting timeline from 24 months to six months. This initiative is needed because the permitting and regulatory process is too slow and cumbersome, especially compared to neighboring states. Delaware’s current approval process places the state at a distinct economic development disadvantage when it comes to attracting jobs and growing businesses, especially since approval timelines in Maryland and Pennsylvania are closer to six months. These findings were included in an independent analysis conducted by professional services firm KPMG, which concludes that Delaware would be better positioned to attract high-paying jobs if its permitting processes were strengthened through better communication, increased efficiency, less paperwork, and more effective tracking and use of data.

Recommendations for improved communication include creating a state project concierge to help streamline communication among state agencies; creating a permitting action committee to help with implementation of permit process improvements; and integrating information technology solutions among the state, counties, and cities.

As for increasing efficiency and reducing paperwork, the analysis recommends creating a prioritization program for significant economic development projects; streamlining the Department of Transportation’s review process to ensure all departments review and provide comments on proposals during the initial review cycle; implementing Transportation Improvement Districts in targeted areas; and implementing prepackaged approvals for targeted investment sites.

Delaware can significantly improve the state’s tracking and using data to identify potential opportunities. The analysis suggests measuring permit process timelines, allowing regulators to develop key performance indicators to hold permitting agencies accountable. Data collection, tracking, and analysis is key to improving.

Delaware has so much to offer businesses: low taxes, a prime location, and a high-quality workforce. A more favorable permitting environment would give Delaware an even greater competitive edge needed to grow, retain, and attract jobs, talent, and investment to our state. Doing so would wisely invest the federal funds coming to us for our long-term benefit. We are committed to working together with the Governor and General Assembly to strengthen economic development in Delaware to make the state more viable for generations to come.

Robert W. Perkins is executive director of the Delaware Business Roundtable.